Global equities stepped off a cliff overnight, shattered by an overwhelming wave of virus infections, sweeping the US and Europe. The reality of the virus is hitting home, although the underlying data shows low morbidity rates and next to zero annual flu infections. The US Congress has failed to implement a stimulus/bailout package which added to the equity markets misery. Currencies were largely unaffected by the drama on stock markets, with the EUR trading 1.1810, while the GBP held above 1.3000.
Equity markets remain extremely volatile, but still remain well funded, due to the record liquidity swamping the system. Central banks will continue to support the massive monetary stimulus, thus providing virtually unlimited support for equities. The US election is now only a week away and becomes the focus of markets. Commodity currencies weathered the equity storm, with the AUD holding above 0.7100, while the NZD trade 0.6670.
Markets remain extremely nervous, ahead of the all-important US election, due next Tuesday.